The Day Today

Jackson Hole begins, the biggest surprise on the schedule could come from the ECB’s Draghi at 7.30pm BST, given he is earmarked for a “luncheon address” and therefore could use it to send a signal {NSN NAKBUM6TTDT2 <go>} http://bit.ly/1nWGMcK
* Most important presentation likely to be at 3.30pm: “Churn and the functioning of labor markets”

Fixed income caught up with the dollar rally as the FOMC Minutes were largely considered to be hawkish – although the S&P also rallied back so equities still like the idea that even when hikes come there won’t be many of them.

The US dollar is breaking out to higher levels since the stronger housing data yesterday, but it looks like an outsize move given rates markets remain rangebound and US equities aren’t significantly outperforming European ones.

* Carney reminds us that he can do what he likes, telling the Sunday Times that even though wage growth is the focus, they can move ahead of it: “we have to have the confidence that real wages are going to be growing sustainably.